AAR Q1 FY2027: Sales Up 24%, Adjusted EPS $1.49 Beats, Raises Full-Year Margin Outlook
AIR sits 53% above its 52-week low of $76.1.
Summary
AAR reported Q1 FY2027 results with 24% sales growth, 38% adjusted EPS growth, and raised full-year guidance, while separately announcing a controlling-interest acquisition of MRO Holdings. Q1 sales and adjusted EPS beat consensus estimates, and the company provided Q2 sales growth guidance of 14%-16%.
Updated with a Reuters report · What changed
Updates
· Reuters — Q1 sales of $918 million beat the $880.68 million consensus estimate, and adjusted EPS of $1.49 beat the $1.33 consensus. AAR provided Q2 sales growth guidance of 14%-16% and raised FY2027 sales growth outlook to low teens.
Key Events · Earnings and Guidance · AIR
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Updated · · Reuters
Q1 Sales Up 24% to $918M, Beats Consensus
Consolidated sales rose 24% year over year to $918.0 million, beating the $880.68 million consensus estimate, with growth across all three core segments: Parts Supply up 31%, Repair, Engineering & Software up 31%, and Government Solutions up 4%.
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Updated · · Reuters
Adjusted EPS $1.49, Up 38%, Beats Consensus
Adjusted diluted EPS was $1.49 versus $1.08 in the prior-year quarter, beating the $1.33 consensus estimate, driven by higher sales and margin expansion. GAAP diluted EPS was $1.00.
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Updated · · Reuters
Full-Year Guidance Raised; Q2 Sales Growth 14%-16%
Management raised full-year FY2027 sales growth guidance (ex. Legacy Commercial Programs) to low teens, up from prior low double-digits to low teens, provided Q2 sales growth guidance of 14%-16%, and gave Q2 adjusted EBITDA margin guidance of 13.0-13.4%.
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Adjusted EBITDA Margin Expands to 12.7%
Adjusted EBITDA rose 34% to $116.5 million, with margin up 100 basis points to 12.7%. Net leverage improved to 1.81x from 2.2x a year ago.
Analysis · AIR · Manufacturing
AAR delivered a strong fiscal first quarter with sales up 24% to $918 million, beating the $880.68 million consensus estimate, and adjusted diluted EPS of $1.49, up 38% year over year and above the $1.33 consensus. Adjusted EBITDA margin expanded 100 basis points to 12.7%, and net leverage fell to 1.81x. Management raised full-year sales growth guidance to low teens, provided Q2 sales growth guidance of 14%-16%, and gave Q2 adjusted EBITDA margin guidance of 13.0-13.4%, signaling confidence in continued demand across all three core segments. The results come alongside the separately announced agreement to acquire a 65% controlling interest in MRO Holdings, which is excluded from this guidance.
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At the time of this filing, AIR was trading at $116.80 on NYSE in the Manufacturing sector, with a market capitalization of approximately $4.6B. The 52-week trading range was $76.10 to $154.00. This filing was assessed with positive market sentiment and an importance score of 8 out of 10.